🏗️ ARV Calculator
After Repair Value Calculator for Real Estate
The price you pay for the property
Total cost of repairs and renovations
Estimated property value after repairs are completed
How to Use This Calculator
Enter Purchase Price
Input the price you plan to pay for the property or the current purchase price.
Enter Repair Costs
Input the total estimated cost of all repairs, renovations, and improvements needed.
Enter After Repair Value
Input the estimated market value of the property after all repairs are completed.
Review Results
See your total investment, potential profit or loss, and return on investment percentage.
Formula
Total Investment = Purchase Price + Repair Costs
Profit = ARV - Total Investment
ROI = (Profit / Total Investment) × 100
Example 1: Profitable Flip
Purchase Price: $150,000
Repair Costs: $30,000
ARV: $220,000
Total Investment: $150,000 + $30,000 = $180,000
Profit: $220,000 - $180,000 = $40,000
ROI: ($40,000 / $180,000) × 100 = 22.22%
Example 2: Break-Even Scenario
Purchase Price: $200,000
Repair Costs: $50,000
ARV: $250,000
Total Investment: $200,000 + $50,000 = $250,000
Profit: $250,000 - $250,000 = $0
ROI: 0% (break-even)
Example 3: Loss Scenario
Purchase Price: $180,000
Repair Costs: $40,000
ARV: $200,000
Total Investment: $180,000 + $40,000 = $220,000
Profit: $200,000 - $220,000 = -$20,000
ROI: (-$20,000 / $220,000) × 100 = -9.09%
About ARV Calculator
The ARV (After Repair Value) Calculator is an essential tool for real estate investors, particularly those involved in fix-and-flip projects, house flipping, and property rehabilitation. ARV represents the estimated market value of a property after all necessary repairs, renovations, and improvements have been completed. This metric is crucial for determining whether a real estate investment will be profitable.
This calculator helps investors make informed decisions by calculating the total investment required (purchase price plus repair costs), the potential profit or loss from the project, and the return on investment (ROI) percentage. By comparing the ARV to the total investment, investors can quickly assess whether a property represents a good investment opportunity or if the numbers don't work out.
Understanding ARV is fundamental to the 70% rule, a common guideline in house flipping that suggests investors should pay no more than 70% of the ARV minus repair costs. This calculator provides the detailed analysis needed to apply this rule and make profitable investment decisions. Whether you're a seasoned investor or new to real estate investing, this tool helps you evaluate deals quickly and accurately.
When to Use This Calculator
- Fix-and-Flip Analysis: Evaluate potential profit from house flipping projects
- Investment Decisions: Determine if a property is worth purchasing and renovating
- Deal Analysis: Quickly assess multiple investment opportunities
- Budget Planning: Plan repair budgets to ensure profitable outcomes
- ROI Calculation: Calculate return on investment for real estate projects
- Offer Negotiation: Determine maximum purchase price to maintain profitability
Why Use Our Calculator?
- ✅ Quick Analysis: Instantly calculate profit potential and ROI
- ✅ Accurate Calculations: Precise formulas for investment analysis
- ✅ Easy to Use: Simple interface for fast deal evaluation
- ✅ Free Tool: No registration or subscription required
- ✅ Investment Planning: Helps make informed real estate investment decisions
- ✅ Mobile Friendly: Evaluate deals on-the-go
Understanding ARV and the 70% Rule
The After Repair Value (ARV) is determined by comparing the property to similar recently sold properties (comps) in the same neighborhood after accounting for all planned improvements. Accurate ARV estimation is critical because it directly impacts your profit calculations. Overestimating ARV can lead to unprofitable deals, while underestimating it can cause you to miss good opportunities.
The 70% rule is a guideline used by many house flippers: Maximum Purchase Price = (ARV × 0.70) - Repair Costs. This rule accounts for holding costs, selling costs (real estate commissions, closing costs), and desired profit margin. Our calculator helps you apply this rule by showing whether your purchase price and repair costs align with profitable ARV targets.
Real-World Applications
House Flipping: An investor finds a distressed property listed for $120,000. After inspection, they estimate $25,000 in repairs. Comparable properties in the area sell for $200,000 after renovation. Using this calculator: Total Investment = $145,000, Profit = $55,000, ROI = 37.9%. This represents a strong investment opportunity.
Wholesaling: A wholesaler identifies a property with an ARV of $180,000 needing $20,000 in repairs. To leave room for the end buyer's profit, they calculate the maximum they should pay: (ARV × 0.70) - Repairs = ($180,000 × 0.70) - $20,000 = $106,000. They can offer $100,000, leaving $6,000 profit for the end buyer.
BRRRR Strategy: An investor using the Buy, Rehab, Rent, Refinance, Repeat strategy calculates ARV to determine if they can refinance and pull out their initial investment. If ARV supports a refinance at 75% LTV that covers purchase and rehab costs, the deal works for the BRRRR strategy.
Important Considerations
- ARV estimates should be based on recent comparable sales, not listing prices
- Always include a buffer for unexpected repair costs (typically 10-20%)
- Factor in holding costs (mortgage payments, utilities, insurance) during renovation
- Account for selling costs (commissions, closing costs, staging) when calculating profit
- Consider market conditions and time to sell when estimating ARV
- Get professional appraisals or use multiple comps to verify ARV estimates
Frequently Asked Questions
What is After Repair Value (ARV)?
ARV is the estimated market value of a property after all repairs, renovations, and improvements have been completed. It's used by real estate investors to determine the potential profit from fix-and-flip projects and to calculate maximum purchase prices.
How do I determine the ARV of a property?
ARV is determined by analyzing comparable properties (comps) that have recently sold in the same neighborhood. Look for properties with similar size, condition, features, and location. Adjust for differences and estimate what your property would be worth after renovations match the comps.
What is the 70% rule in house flipping?
The 70% rule suggests that investors should pay no more than 70% of the ARV minus repair costs. Formula: Maximum Purchase Price = (ARV × 0.70) - Repair Costs. This accounts for holding costs, selling costs, and desired profit margin.
What costs should be included in repair costs?
Repair costs should include all expenses needed to bring the property to market-ready condition: materials, labor, permits, inspections, contractor fees, and any necessary systems upgrades (HVAC, plumbing, electrical). Always include a 10-20% buffer for unexpected issues.
What is a good ROI for a fix-and-flip project?
A good ROI for fix-and-flip projects typically ranges from 20-50%, though this varies by market and risk level. Higher-risk projects or longer holding periods may require higher ROI targets. Many investors aim for at least 20-30% ROI to account for risks and opportunity costs.
Does this calculator account for selling costs?
This calculator shows gross profit before selling costs. In reality, you should subtract real estate commissions (typically 5-6%), closing costs, staging, and other selling expenses from the profit. Many investors factor these into their ARV calculations or use them to adjust their maximum purchase price.